Future technology: Setback for green steel in Germany
The Luxembourg-based company Arcelor Mittal is withdrawing from its CO₂-reduced steel production project. Other suppliers such as Thyssenkrupp and Salzgitter are sticking to their plans. But the industry is under severe pressure.
The planned transition to climate-neutral steel in Germany has suffered a setback with the withdrawal of the Luxembourg-based company Arcelor Mittal. Experts spoke on Friday of a warning signal for the industrial location. The world's second-largest steel company is halting its investments, citing the lack of economic viability of CO₂-reduced steel production. The federal government and the state of Bremen had promised Arcelor Mittal funding of almost 1.3 billion euros. The reversal puts thousands of jobs at risk.
IG Metall called on Chancellor Friedrich Merz (CDU) to convene a crisis summit for the industry. It is struggling with overcapacity on the global market, especially with very cheap steel from China. US President Donald Trump's high special tariffs on certain sectors are further exacerbating the situation.
Green steel was one of the prestige projects of former Economics Minister and Green Party politician Robert Habeck. Three major green steel projects are already underway – by Salzgitter, Thyssenkrupp , and SHS (Stahl-Holding-Saar). They have received funding approvals totaling approximately €5.6 billion. Thyssenkrupp and Salzgitter announced their intention to move forward with their plans. However, both are calling for more speed in the expansion of corresponding hydrogen networks and a reduction in electricity prices for industry. The coalition government is planning this, but the EU Commission must approve the project.
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